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New Hampshire Amends Statute Regarding Noncompete Agreements

In July 2012, New Hampshire enacted RSA 275:70 (Non-Compete and Non-Piracy Agreements). It provided:

Prior to or concurrent with making an offer of change in job classification or an offer of employment, every employer shall provide a copy of any non-compete or non-piracy agreement that is part of the employment agreement to the employee or potential employee. Any contract that is not in compliance with this section shall be void and unenforceable.

By failing to provide definitions, however, the statute left open two issues: (1) what is a “non-piracy agreement”?; and (2) what is a “change in job classification”? These ambiguities were noted in many articles soon after the law took effect.

The New Hampshire legislature resolved both issues when it amended the statute effective July 28, 2014. New RSA 275:70 (Noncompete Agreements) reads:

Any employer who requires an employee who has not previously been employed by the employer to execute a noncompete agreement as a condition of employment shall provide a copy of such agreement to the potential employee prior to the employee’s acceptance of an offer of employment. A noncompete agreement that has not been disclosed to an employee as required by this section shall not be enforceable against the employee, but all other provisions of any employment, confidentiality, nondisclosure, trade secret, intellectual property assignment, or any other type of employment agreement or provision shall remain in full force and effect.

The new provision is much more clear. It no longer covers "non-piracy agreements" or "changes in job classifications." What a difference two years–and a second chance–can make.